Can a new state program do enough or will it get bogged down in red tape?

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A new program started Monday that promises to help many California homeowners who are in danger of losing their homes. But can it do enough?

"Keep Your Home California" is using $2 billion in federal money to help unemployed homeowners. It promises to help the unemployed with direct mortgage payments for up to six months.

The program, which was announced a year ago, was supposed to start two months ago. For homeowner Bobbie Hill, the program is more reason to be skeptical.

"When I see that a new program has come out, while I want to investigate it, I want to find out if I qualify, I’m extremely skeptical," said Hill.

"Keep Your Home California"

Can a new state program do enough or will it get bogged down in red tape?

(Published Monday, Jan. 10, 2011)

Hill says the only reason there is still a roof over her head is because she won't give up the fight.

“You have to be proactive. You can't sit back and listen to the mortgage company and believe what they say. If you do, you'll lose your home,” she said.

Hill lost her full time job more than a year ago and has been fighting to keep her North County home ever since. A home she's lived in for 25 years.

“Purgatory, perpetual purgatory, that's just the situation as I continue to try and fight to keep my home,” she said.

Her mortgage company has told Hill more than once that she qualifies for federal assistance programs -- only to find her house days away from a foreclosure auction.

“Gee, am I going to have a place, 30 days, 60 days or 90 days?” Hill asked.

The program also offers a buy down feature that can help reduce the balance on your loan. That part of the program starts next month.

The money is there, but it will only work for homeowners whose lenders are willing to share confidential dates with the state. That could be problem and another reason why a program that means well may get bogged down by red tape.